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The money factor is similar to the interest rate. The dealership will determine the money factor based on your credit score. ... If you're considering the benefits of a car lease, a few factors ...
Money factor: The price you’ll pay to lease the vehicle — essentially, the interest rate. Failing to negotiate these figures could mean you’re leaving several hundreds or thousands of ...
Find out everything you need to know about leasing a car, including the pros and cons and how to get the best lease rate. ... You can calculate your car's money factor by asking the dealership ...
The actual lease payments are calculated in a very similar way to loan payments, but instead of an APR, the company uses something called the money factor. At the end of a lease's term, the lessee must either return the vehicle to or buy it from the owner. The end of lease price is usually agreed upon when the lease is signed. [5]
2.3 Determine discount factor / rate. ... Car Lease −6 −12 −12 −18 −18 Marketing ... reflect how investors make money from equity investments ...
A money factor of .0030 is equivalent to a monthly interest rate of 0.6% and an APR of 7.2%. [14] For a leasing arrangement with an initial capital cost of C, a residual value at the end of the lease of F and a monthly interest rate of r, monthly interest starts at Cr and decreases almost linearly during the term of the lease to a final value ...
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